premio wrote:already living here with a 2 years tenant agreement for 25000 but am sure rents will hit 28000-30000 by year end. Intrest is a whopping 18% Equity but since am only borrowing 2.25m its not really worring my bussiness can afford prepayments of 500k every year which would reduce the damage from high interest.
You are a lucky man. Whichever way, please take the mortgage now because you can afford it. This will secure you a developed and serviced property immediately.
You have just confirmed that you can afford to accelerate the payments every year. This will cushion you slightly from high interest rates and enable you pay off the mortgage in a shorter period. Personally am not a fan of mortgages, but that is the trick with mortgages, if you can accelerate the payments and even pay back the loan within a much shorter period, the better. Alternatively, if you go for the plot, you will continue paying rent for 2 years as you wait for the gated community to be ready. This may take an even longer time because you are not in control of the development of the gated community. Therefore you may continue paying rent for unforeseeable future without ever owning the house.
You can also take the mortgage now and instead of accelerating payments now, use the money from the business to buy a similar plot. You can then hit 2 birds with 1 stone, living in your house and building another house.